Drill Results Routine +

Pinnacle Commences Underground Delineation Drilling Program at El Potrero

Underground Delineation Drilling Commences at El Potrero as Production Decision Timeline Tightens

By The Northwire Desk — AI Analysis May 05, 2026 · 07:00 PINN · 0.1 Pinnacle Silver and Gold Corp.

Executive Summary

Pinnacle Silver and Gold Corp. has officially commenced an underground delineation drilling program at its flagship El Potrero project in Durango, Mexico.
The program consists of 108 NQ-size holes totaling 2,416 metres across three historic mines: Pinos Cuates, Dos de Mayo, and La Dura.
This follows previous channel sampling results which yielded high-grade assays up to 85.1 g/t Au and 520 g/t Ag over 0.5 metres in the upper level of Pinos Cuates.
The company aims for a formal production decision later this year (2026) based on the resource estimate generated from this drilling.
Surface drilling is planned to follow the underground program to test additional veins including Dos de Mayo, El Capulin, and La Estrella.

Material Impact

Execution of Planned Milestone: The commencement of drilling confirms execution of a plan previously announced in February 2026 ("Underground delineation drilling is planned for the second half of March"). While slightly delayed (March to May), it validates management's commitment to the timeline.
De-risking Towards Production: This is a critical step from exploration/sampling into resource definition. The CEO explicitly states this will "significantly de-risk the project on the way towards a formal production decision later this year."
Incremental Nature: As the scope and intent were disclosed in prior releases (Jan 13, Feb 26), the market likely anticipated this move. It does not introduce new variables like a discovery or financing but confirms operational progress.
Capital Implications: Couloir Capital's April report estimated CapEx of $4.5 - $5.0 million to return to production. Pinnacle raised approximately $2.6 million in February 2026. The company may face capital shortfalls requiring further dilution before production decision, which is a risk factor not fully mitigated by this news alone.
Rating Justification: Classified as Routine - Positive because it represents the execution of previously disclosed plans rather than new, unexpected market-moving information like a major discovery or strategic investment.

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Company Overview

Company: Pinnacle Silver and Gold Corp., focused on the El Potrero gold-silver property in Durango, Mexico.
Project Location: Sierra Madre Occidental, approximately 35 km from four operating mines (Ciénega, Tahuehueto, Topia).
Geology: Low-sulphidation epithermal vein system with historic production grades of 7-8 g/t Au and 170-200 g/t Ag.
Infrastructure: Existing 1980s plant rated ~100 tpd (crushing, milling, vat leach, Merrill-Crowe) available for refurbishment. Underground workings exist across three historic mines.
Ownership Path: Initial 50% interest upon production start; option to increase to 100% ownership subject to a 2% NSR.

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